Originally Posted by HeadHunt
I looked at my policy and there is no definition. USCG defines it as 200 miles. NOAA defines it at 20 miles.
What is Charter Lakes official definition?
This question actually comes up quite a lot. Not all insurance companies have the same underwriting guidelines or policy warranties so always read your policy carefully so you fully understand those warranties, coverage's, and it's exclusions or ask your agent to explain it to you, but I'll do my best to answer you in this forum.
Depending on the vessel and the use of it (commercial vs. recreational), some boat insurance
carriers clearly define the miles offshore they will allow the vessel owner to navigate it, typically 25 miles max for smaller bay boats, runabouts, or skiffs, or they may restrict the navigation to US inland lakes, rivers (navigable tributaries), and intracoastal waters only for boats like pontoons, airboats, ski-boats, etc.
For larger Deep-V hulled vessels over 26' in length however (cruisers, sport fish, motor yachts, trawlers, larger center consoles, etc.), many carriers do not restrict the mileage offshore. They assume you will not take that vessel father offshore than the fuel capacity you have onboard to get back to port safely. This is actually in the policy holders benefit. For example - If you owned a 36' Yellowfin CC with triple 350 OB's and your policy had say a 100 mile navigation warranty limit and you had an issue with the vessel 110 miles out, the insurance company could deny your coverage as you breached that policies clearly defined navigation warranty. Whereas a policy that did not restrict and define that limit, there would not be any coverage issues.
That said however, unless your navigation warranty specifically states you are allowed to navigate to the territorial waters of the Bahamas, Caribbean, Canada,or Mexico, etc., you would not be allowed to navigate into those territories without your insurance companies permission. Some also restrict what time of year you are allowed to be in certain territories during the summer hurricane season vs. the winter season and your premium would be adjusted for this. That is the general rule of thumb but there are exceptions as every carrier uses their own navigation warranties and definitions.
I hope this helps and yes it's a bit of a gray area, but again, that is actually in your benefit if you own a vessel capable of offshore navigation. If you prefer a specific limit, we can ask the carrier to manuscript a mileage restriction to your policy for you by request which some companies will allow. Please call our office or you can PM us your contact info through this forum and we can contact you.
Charter Lakes Marine Insurance